Consumer Products

Blue Buffalo raises outlook as results top targets

MariaArmental

Blue Buffalo Pet Products Inc. on Wednesday raised its financial projections for the year as second-quarter results beat expectations.

Shares, which have largely been trading below their $27 market debut in July 2015, rose 2.5% to $27.50 in after-hours trading.

The pet-food maker now expects to make 74 cents to 76 cents a share in adjusted profit in 2016 on $1.14 billion to $1.15 billion in sales, compared with its earlier view of 73 cents to 74 cents a share on $1.13 billion to $1.14 billion in sales.

Those figures exclude costs tied to litigation and a secondary offering last month.

Its controlling shareholder, New York investment firm Invus LP, and company insiders, including the Bishop family, sold $17.3million shares at a public offering price of $22 a share.

Analysts surveyed by Thomson Reuters had projected 17 cents a share on $280.9 million in sales.

Gross profit margin improved to 44.4% from 39.3% a year earlier.

The Wilton, Conn., company on Wednesday lowered its projected capital spending for the year by $20 million, to a range of $50 million to $60 million, as part of a $200 million, three-year investment program to expand its manufacturing and research and development facilities.

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